Safe and Sound

KILGORE SHELL EMPLOYEES

Kilgore, TX
4
Star Rating
KILGORE SHELL EMPLOYEES is an NCUA-insured credit union founded in 1936 and currently based in Kilgore, TX. The credit union has $2.6 million in assets, according to December 31, 2017, regulatory filings.

The credit union holds loans and leases worth $1.7 million. Its 306 members currently have $2.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KILGORE SHELL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is useful. When it comes to safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, KILGORE SHELL EMPLOYEES scored 18 out of a possible 30 points, exceeding the national average of 15.65.

KILGORE SHELL EMPLOYEES appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 18.00 percent in our test, above the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these kinds of assets could eventually be required to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the risk of a failure in the future.

KILGORE SHELL EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses diminish a credit union's ability to do those things.

KILGORE SHELL EMPLOYEES fell behind the national average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

KILGORE SHELL EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's running ahead of its peers in this area.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.